Congress Targets 'Claim Sharks' with Bill to Block Auto-Dialers from VA Hotline
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A bipartisan bill in Congress aims to prevent companies from using auto-dialers to call federal agencies, a practice used by some firms to monitor veterans' benefits and automatically bill them. The bill is part of a broader legislative push to curb predatory collection practices targeting disabled veterans, with a competing industry-backed bill also under consideration.
Facts First
- A bipartisan bill seeks to block auto-dialers from federal agency hotlines to curb predatory practices targeting veterans.
- The bill responds to a 2025 NPR investigation of a Florida company using auto-dialers to monitor VA benefit payments.
- Federal law prohibits charging veterans for help filing initial claims, but civil penalties for violations were removed two decades ago.
- A competing industry-backed bill would cap fees at $12,500 and legitimize the claims consulting industry.
- California has enacted a state law imposing penalties on firms charging for initial claims assistance, starting next year.
What Happened
A bipartisan bill aims to amend telecommunications law to prevent companies from using auto-dialers to call federal agencies. The bill is currently in the House Committee on Energy and Commerce. It responds to a 2025 NPR investigation of Trajector Medical, a Florida-based company, which revealed the use of an auto-dialer program called 'CallBot' to access a Department of Veterans Affairs (VA) benefits hotline. The program inputs veterans' personal information to detect increases in their disability benefit payments, and the company then charges a fee based on that increase.
Why this Matters to You
If you or a family member is a veteran receiving disability benefits, your personal information may be used by companies to automatically generate bills without your full knowledge. A federal lawsuit alleges Trajector failed to obtain knowing consent for this practice. Bills from these practices can range from hundreds to over $20,000. Federal law already prohibits charging for help with initial claims, but without penalties, enforcement is difficult. This legislative activity could lead to stronger protections and clearer rules for veterans.
What's Next
Both the auto-dialer ban bill and a separate bill to reinstate civil penalties and ban for-profit claims consulting nationwide are in the House Committee on Veterans' Affairs. A competing bill backed by the claims consulting industry, which would set a $12,500 fee cap and legitimize the industry, is also in the same committee. The legislative process may determine whether the industry faces stricter prohibitions or regulated caps. Meanwhile, California's new state law imposing penalties on firms charging for initial claims assistance will take effect next year.